First Quantum Reports Operational and Financial Results for Three Months and Twelve Months Ended December 31, 2005.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- (All figures expressed in US dollars) First Quantum Minerals First Quantum Minerals Ltd. is a growing mining and metals company whose principle activities include mineral exploration, development and mining. The Company produces LME grade "A" copper cathode, copper in concentrate, gold and sulphuric acid. Ltd. (the "Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :FM)(LSE LSE - Language Sensitive Editor :FQM FQM Fédération Québécoise des Municipalités (Canada) FQM Fédération Québécoise des Massothérapeutes FQM Food Quality Management FQM Fundamental Query and Manipulation FQM Field Quality Management ) is pleased to announce its results for the three months and twelve months ended December December: see month. 31, 2005. The complete financial statements and management discussion and analysis are available for review at www.first-quantum.com and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with this News Release. Highlights - 2005 & the Fourth Quarter - Record net earnings of $152.8 million or $2.48 per share in 2005, an increase of 446% compared with 2004. - Record net earnings of $57.1 million or $0.93 per share in the fourth quarter, an increase of 514% compared to 2004. - Copper production in 2005 of 119,117 tonnes (263 million pounds), an increase of 187% compared with 2004. - Cash flow from operating activities of $101.0 million ($1.64 per share) in the fourth quarter and $236.1 million ($3.84 per share) for 2005. - Inaugural dividends of $4.0 million paid to Company shareholders in 2005. Final dividend for 2005 of CA$0.265 per share (26.5 Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. cents) declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. , payable to shareholders of record on April 19, 2006. - Commercial production at Kansanshi commenced in April 2005. Fourth quarter production was 29,558 tonnes (65.1 million pounds) an increase of 28% over third quarter production. - Detailed design of the Guelb Moghrein project in Mauritania Mauritania (môrĭtā`nēə), officially Islamic Republic of Mauritania, republic (2005 est. pop. 3,087,000), 397,953 sq mi (1,030,700 sq km), NW Africa. is now complete and construction is progressing to completion. - The Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. project Environmental Impact Assessment and Environmental Management Plans were formally approved and the Exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. permit granted by the Government of the Democratic Republic of Congo Congo, river, Africa Congo (kŏng`gō) or Zaïre (zī`ēr, zäēr`), great river of equatorial Africa, c. ("DRC DRC Democratic Republic of Congo DRC Down (Stage) Right Center DRC Director(ate) of Reserve Components DRC Disability Rights Commission (United Kingdom) "). Project activity has commenced. Financial Results (see attached financial statements) 2005 Fourth Quarter Results Fourth quarter revenues were $176.9 million, which included copper revenues of $174.2 million ($119.5m Kansanshi and $54.7m Bwana/Lonshi) and gold revenues of $2.7 million. Copper revenues at Kansanshi comprised $87.6 million from copper cathodes and $31.9 million from copper concentrates. Copper revenues increased from the third quarter due to improvements in both the market price for copper and a 17% increase in copper production. Copper production was 42,220 tonnes which included 29,558 tonnes from Kansanshi (18,324 tonnes cathode; 11,234 tonnes concentrate) and 12,662 tonnes from Bwana/Lonshi. The Company also produced 72,040 tonnes of acid, which represents a 102% increase over 2004 as a result of the start up of the Solwezi Solwezi is the capital of the North Western Province of Zambia. Solwezi has approximately 65,000 inhabitants at an elevation of 1235 m above sea level. Kaonde is the largest tribe represented in Solwezi. Acid Plant. The realized copper price was $1.97 per pound for the quarter. The significant increase from 2004 is principally due to the increased market price for copper. The average LME See London Metal Exchange. LME See London Metal Exchange (LME). cash copper price for the fourth quarter was $1.95 versus $1.40 for the fourth quarter of 2004. The realized copper price is calculated by deducting treatment and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar charges ("TC/RCs") and freight parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. charges from the selling price achieved before realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. charges. The gross copper selling price, before realization charges, for the quarter was $2.09 per pound, which was higher than the average LME cash price of $1.95 per pound due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. contract pricing terms. Gold revenues arise from the sale of gold contained in copper concentrates at Kansanshi. Each tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. of concentrate generally contains between 3 and 10 grams of gold for which a net credit is received by the Company after the deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of the gold realization charges. For the fourth quarter, gold revenues totalled $2.7 million for 5,766 ounces of gold. Revenue from surplus acid sales has declined from previous years as a result of the increased internal acid consumption at Bwana/Lonshi and Kansanshi, needed for the increased copper production. Cost of sales as a percentage of revenue decreased to 27% in the fourth quarter of 2005. Although unit costs have risen from 2004, the cost of sales has decreased as a percentage of revenue which is explained by rising copper prices and the addition of copper concentrates to the sales mix sales mix See product mix. in 2005. Group cash costs have increased from the fourth quarter of 2004 due to the start up of Kansanshi and increased costs at Bwana/Lonshi. Cash costs at Kansanshi were $0.65 per pound and $0.84 per pound at Bwana/Lonshi compared with average cash costs of $0.48 per pound for the fourth quarter of 2004. The cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. for the quarter from operating activities, before working capital movements, was $101.0 million or $1.64 per share. The cash inflow from operating activities, after working capital movements, was $115.5 million or $1.87 per share. The difference between the before and after non-cash working capital movements can be principally attributed to the increase in accounts payable. Net earnings for the quarter increased to $57.1 million or $0.93 per share compared with third quarter net earnings of $39.5 million or $0.64 per share. 2005 Annual Results Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the year ended December 31, 2005 were a record $444.6 million; 97.6% being derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the Company's core activity, copper mining. Copper revenues year on year increased significantly with the commencement of commercial production at Kansanshi and the improved copper production and realized copper price at the Bwana/Lonshi operation. Copper production was 119,117 tonnes which included 69,579 tonnes from Kansanshi (41,521 tonnes cathode; 28,058 tonnes concentrate) and 49,538 tonnes from Bwana/Lonshi. The Company also produced 260,796 tonnes of acid, which represents an 86% increase over 2004 as a result of the start up of the Solwezi Acid Plant. Copper revenues at Kansanshi for 2005 were $252.7 million, which was composed of $170.9 million for copper cathode and $81.8 million for copper in concentrate. Kansanshi revenue figures only include revenues from the commencement of commercial production on April 19, 2005. Copper revenues at Bwana/Lonshi were $181.4 million. For the purposes of financial reporting, TC/RCs and freight parity charges are recognized as a revenue deduction and are not included within the cost of sales. The realized copper price was $1.66 per pound for the year, which was a significant increase from last year due to the rising market price for copper. The gross copper selling price, before realization charges, for the year was $1.79 per pound, which was higher than the average London Metal Exchange London Metal Exchange (LME) A market for trading base metals, where traded options contracts are available against the underlying futures contract. ("LME") cash price of $1.67 per pound, due to favourable contract pricing terms. The favorable adjustments arise from sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. with a quotation QUOTATION, practice. The allegation of some authority or case, or passage of some law, in support of a position which it is desired to establish. 2. Quotations when properly made, assist the reader, but when misplaced, they are inconvenient. period (final pricing basis) in future months plus premiums that the Company receives for its cathodes over LME cash prices. During this period of continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. increasing copper prices this has been favorable for the Company. Certain copper sales agreements entered into by the Company call for "provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. pricing" based on the average applicable cash copper price for a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. future month. Included within copper revenue as at December 31, 2005 was 28,491 tonnes of copper that has been provisionally pro·vi·sion·al adj. Provided or serving only for the time being. See Synonyms at temporary. n. 1. A person hired temporarily for a job, typically before having taken an examination qualifying the person for permanent priced using a provisional average LME copper price of $2.06 per pound. This equates to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $129.5 million worth of total revenue included within the 2005 results that may be subject to adjustment as a result of copper price fluctuations between January January: see month. 2006 and July July: see month. 2006. The average LME cash price for January 2006 was $2.15 per pound and the average copper price for February February: see month. 2006 was $2.26 per pound. Gold revenues represent a credit from the sale of copper concentrates at Kansanshi. Each tonne of concentrate generally contains between 3 and 10 grams of gold for which a net credit is received by the Company after the deduction of the gold realization charges. For the year, gold revenues totalled $6.7 million for 14,266 ounces of gold. Revenue from surplus acid sales fell from $10.2 million in 2004 to $3.8 million in 2005. This decrease was principally due to an increase in internal acid consumption at Bwana/Lonshi resulting from the increased copper production. Cost of sales for 2005 increased by 182% to $151.9 million, which is consistent with the 187% increase in copper production due to the commencement of commercial production at Kansanshi and the increased copper production from the Bwana/Lonshi operation. Group cash costs have increased year on year as a result of the introduction of the Kansanshi operation as well as increased costs at Bwana/Lonshi. Cash costs at Kansanshi were $0.63 per pound and $0.68 per pound at Bwana/Lonshi for 2005 both higher than the group average of $0.46 in 2004. Kansanshi's unit costs were higher than expected due partially to the requirement to transport concentrate further and use alternative smelters than those planned while a new smelter is being completed at Mufulira Mufulira (m  flē`rä), city (1990 pop. 152,944), N central Zambia, on the border with the Congo. (part of Mopani Mopani or mopane can be:
For 2005, the cash inflow from operating activities, before working capital movements, was $236.1 million or $3.84 per share. The cash flow from operating activities, after working capital movements, was $201.8 million or $3.28 per share. The difference between the cash flow before and after working capital movements can be attributed principally to the increase in both accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ($44.5 million) and inventory ($25.2 million). The large increase in both is due to the normal payment terms surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. concentrate and cathode sales at Kansanshi coupled with the provisional revenue adjustments at year end. The increase in inventory stems from the Company's $13.4 million investment in stockpiles at Kansanshi. The increase in accounts receivable and inventory has been partially offset by an increase in payables Payables Related: Accounts payable of $35.5 million. Net earnings for the year increased to $152.8 million or $2.48 per share, including a gain on the sale of the Company's interest in Anvil anvil Iron block on which metal is placed for shaping, originally by hand with a hammer. The blacksmith's anvil is usually of wrought iron (sometimes of cast iron), with a smooth working surface of hardened steel. of $16.1 million or $0.26 per share. Kansanshi 2005 Fourth Quarter Results During the quarter, 1,499,000 tonnes of ore and 5,240,000 tonnes of waste were mined. In the fourth quarter, the total material mined declined from the third quarter from a total of 7,685,000 tonnes to 6,739,000 tonnes. The 12% decrease can be attributed to the onset on·set n. A beginning; a start, as of a cold. of the Zambian wet season coupled with an increased ore re-handling requirement, as Kansanshi differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: between ore types to maximize the mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. . The previously reported fuel and tire shortages had minimal impact during the quarter. For the fourth quarter, contained copper production increased 28% to 29,558 tonnes, which although a substantial increase, fell just short of the revised target of 30,513 tonnes, principally due to a mill relining required in December, and disruptions in milling for "tie-ins" during the upgrade construction. During the quarter, Kansanshi produced 18,324 tonnes of copper cathode at a cash cost of $0.52 per pound and a total cost of $0.63 per pound. Cathode costs were marginally higher than the previous quarter due to one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. of duty and import charges. During the quarter, Kansanshi produced 11,234 tonnes of contained copper in the form of concentrates at a cash cost of $0.87 per pound and a total cost of $0.98 per pound. Concentrate costs were up on the previous quarter as a result of higher freight costs and a lower gold credit. The increase in the freight costs of approximately $0.10 per pound is a result of selling a high component of concentrates to international smelters rather than domestic smelters as the smelter at Mopani (Mufulira smelter) does not have any spare capacity while its new smelter is being completed. The gold credit also fell $0.08 quarter on quarter as a result of the lower ratio of concentrate sales to copper concentrate production. In the determination of the gold production credit, the gold sales figure is used, consequently as the sales increase so does the gold credit. The accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of duties and import charges also impacted the concentrate side but were offset by other processing efficiencies. The combined cash cost for both concentrate and cathode was $0.65 per pound with a total cash cost of $0.76 per pound. 2005 Annual Results In 2005, 7,288,000 tonnes of ore and 16,141,000 tonnes of waste were mined. The total waste mined was below the original targets principally as a result of the tire shortage in the first half of the year, late delivery of mining equipment and the additional rehandling requirements experienced in the fourth quarter. Notwithstanding, Kansanshi was still able to build stockpiles of 5.5 million tonnes of high and low grade ore with a copper content of approximately 1.8%. The strip ratio for the year was 2.2:1. As this exceeded the expected life of mine strip ratio, the Company deferred costs of $6.5 million associated with mining at Kansanshi. As at the end of the year, Kansanshi had deferred a total of $7.8 million in mining costs. Copper production was 69,579 tonnes of which 41,521 tonnes were produced from copper cathode and 28,058 tonnes from concentrates. Excluded from the copper production figures for the year are 6,792 tonnes of copper in concentrate and 1,941 tonnes of finished copper cathode that were produced prior to commercial production being achieved in April. The combined cash costs for both cathode and concentrate for 2005 was $0.63 per pound with a total cost of $0.79 per pound. The cash cost for cathode was $0.54 per pound, which was comprised of ore costs of $0.08 per pound; processing costs of $0.42 per pound; and other costs of $0.04 per pound. Total costs were $0.70 per pound. The cash costs for concentrate was $0.78 per pound, which was comprised of ore costs of $0.08 per pound; processing costs including TC/RC and freight credits of $0.77 per pound; and other costs of $0.05 per pound offset by a $0.12 per pound gold credit. The TC/RC costs were higher than expected due to the requirement to transport the concentrate further than planned and higher smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. charges as Mufulira was unable to process the planned production while the new smelter is being completed. The total costs for concentrate were $0.94 per pound. Bwana/Lonshi 2005 Fourth Quarter During the fourth quarter, approximately 209,000 tonnes of ore and approximately 5,918,000 tonnes of waste were mined from Lonshi. The strip ratio for the quarter was 28:1. Total material mined increased 22% despite two of the three months in the fourth quarter experiencing much heavier than average rainfall. The increase in material mined was principally due to the arrival of the remaining mining fleet acquired to address the requirements of the July 1st, 2005 revision to the strip ratio from 12:1 to 26:1. As with Kansanshi, both the fuel and tire situations improved during the quarter with no significant downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. experienced as a result of either of these two items. During the fourth quarter, copper production was 12,662 tonnes, 4% below the record production achieved in the previous quarter. Cash costs were $0.84 per pound and total costs were $1.16 per pound of copper. Cash costs at Bwana/Lonshi increased $0.10 over quarter three due to a $0.06 increase in ore costs, a $0.04 increase in processing costs, and a $0.03 increase in administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. offset by an improved acid credit of $0.02 per pound as a result of the increased sales from the Solwezi Acid Plant located at Kansanshi. The increase in ore costs can be attributed to the higher stripping ratio, higher fuel costs and higher transportation costs. The increase in processing costs can be attributed to the increased cost of oil based consumables. Acid production increased to 72,040 tonnes, of which 34,988 tonnes were produced at Ndola Ndola (əndō`lä), city (1990 est. pop. 376,311), N central Zambia, near the Congo. It is a commercial, mining, and manufacturing center, located in the Copperbelt. Copper mining in Ndola long antedates the coming of the Europeans (c.1900). and 37,052 tonnes at Solwezi. Of the total acid produced, 219 tonnes were sold externally, 35,754 tonnes consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. at Kansanshi with the balance consumed at Bwana/Lonshi. 2005 Annual Results In 2005, approximately 981,000 tonnes of ore and approximately 17,246,000 tonnes of waste were mined from Lonshi. The strip ratio for the year was 18:1, which is less than the new mine life strip ratio established on July 1, 2005 of 26:1. As a result, $1.7 million has been expensed or provided for during 2005. The Company recognized a deferred stripping liability of $1.0 million as at December 31, 2005. The increased strip ratio combined with, the higher actual mining and transport costs in 2005, has meant that the ore costs have risen $0.15 per pound compared with the same period last year. Copper production increased to 49,538 tonnes in 2005. The 19% increase over the same period in 2004 was principally as a result of being able to operate the tankhouses at record high current densities. Cash costs for 2005 were $0.68 per pound and total costs were $0.93 per pound. The increase in cash costs from 2004, can be attributed to the increase in ore costs ($0.15 per pound) due to the increase in the life of mine strip ratio that occurred on July 1, 2005 and the increased cost of tires and fuel. This coupled with increased acid costs ($0.04 per pound) due to the increased gangue gangue also gang n. Worthless rock or other material in which valuable minerals are found. [French, from German Gang, lode, from Middle High German ganc acid consumption resulting from the higher levels of dolomitic dol·o·mite n. 1. A white or light-colored mineral, essentially CaMg(CO3)2, used in fertilizer, as a furnace refractory, and as a construction and ceramic material. 2. ore. The increased internal consumption of acid has also reduced the acid credit available from the Ndola plants. These costs have been slightly offset by the acid credit from the Solwezi acid plant of $0.06 per pound. Cash costs at Bwana/Lonshi for the year were composed of ore costs $0.36 per pound and processing and other costs of $0.38 per pound. These costs were offset by a $0.06 credit for acid sales. Acid production in 2005 was 260,796 tonnes, of which 134,633 tonnes were produced at Ndola and 126,163 tonnes at Solwezi. Of the total acid produced, 32,601 tonnes were sold externally and 85,330 tonnes were consumed at Kansanshi. Annual acid production capacity at Ndola and Solwezi is 146,000 tonnes per site. Guelb Moghrein Copper/Gold Deposit, Mauritania Guelb is located 250 kilometres northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. of the nation's capital, Nouakchott Nouakchott (nwäkshôt`), city (1991 est. pop. 500,000), capital of Mauritania and Nouakchott dist., W Mauritania, a port on the Atlantic Ocean. , near the town of Akjoujt Akjoujt is a town in western Mauritania. It is located at around . It is the capital of Inchiri region. The town's main industry is gold and copper mining. , in Mauritania. It consists of an open pit mineable copper/gold deposit. In January 2005, the detailed design and engineering contract was awarded with site establishment commencing in March 2005. Logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation and supply difficulties in Mauritania have delayed the commissioning from the first quarter of 2006 until the second quarter of 2006, with commercial production now expected in the third quarter of 2006. Production will be initially targeted at approximately 30,000 tonnes of copper in concentrate and 70,000 ounces of gold per year. As at December 31, 2005, the Company had capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. acquisition and development costs totalling $66.0 million (2004: $10.3m). Detailed design is now complete. In 2005, a non-violent non-violent Adjective using peaceful methods to bring about change nonviolence n military coup coup (k ) [Fr.,=blow], among Native North Americans of the Plains culture, a war honor, awarded for striking an enemy in such a way that it was considered an extreme act of bravery. in Mauritania has had no impact on the construction program and
the new government has pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. to honour Honour or honor (see spelling differences), is the evaluation of a person’s trustworthiness and social status based on that individual's espousals and actions. all existing agreements. Site civil works and structural steel erection erection /erec·tion/ (e-rek´shun) the condition of being rigid and elevated, as erectile tissue when filled with blood. e·rec·tion n. 1. are complete and final equipment installation is now in progress. During the fourth quarter, the Environmental and Social Impact Assessment ("ESIA ESIA Environmental and Social Impact Assessment ESIA Environmental and Social Impact Analysis ") report was reviewed by the Ministry of Mines and Industry in Nouakchott and was found to contain no fatal flaws. A provisional mining license was issued in late-December, with final approval of the ESIA and a final mining license to be granted once a reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. plan is submitted and bonding put in place. Frontier Copper Deposit, DRC In May 2004, the Company announced the results of an independent copper-cobalt resource estimate completed at Frontier Project located in Haut Katanga Province For other uses, see Katanga (disambiguation). Katanga is the southern province of the Democratic Republic of the Congo, due under the new constitution to be replaced by four smaller provinces by February 2009. , DRC. As at December 31, 2005, the Company had spent $9.9 million (2004: $3.7m) on this project. The current scoping study envisages an average annual production of 80,000 tonnes of contained copper. In January 2006, the Frontier Environmental Impact Assessment and Environmental Management Plan were formally approved by the Congolese Ministry of Mines and the Exploitation Permit was granted in February 2006. Kashime Copper Prospect, Zambia Zambia (zăm`bēə), officially Republic of Zambia, republic (2005 est. pop. 11,262,000), 290,584 sq mi (752,614 sq km), central Africa. A preliminary inferred oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. resource has been completed by independent consultants, Digital Mining Services, and in February 2006, a program of combined reverse circulation and diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral was initiated to improve definition. In March 2006, a programme of induced polarization Induced polarization (IP) is a geophysical imaging technique used to identify subsurface materials, such as ore. The method is similar to electrical resistivity tomography, in that an electric current is induced into the subsurface through two electrodes, and voltage is will be carried out over the eastern and central portion of the target where significant copper sulphides have been intersected at depth in some holes. During the year ended December 2005, the Company expensed $7.5 million (2004: $3.1m; 2003: $0.6m) on other exploration targets that were predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. located within the DRC and Zambia. Of this amount, $2.6 million was related to the Kashime Copper Prospect. As at December 31, 2005, no costs associated with this exploration property have been deferred. Investments - Carlisa The Company holds an 18.8% interest in Carlisa Investment Corporation ("Carlisa"), which holds a 90% interest in Mopani. The carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of this investment as at December 31, 2005 is $9.5 million. There has been no movement in this investment since 2002. For 2005, Mopani produced approximately 132,000 tonnes of finished copper and 1,800 tonnes of cobalt Cobalt, town, Canada Cobalt (kō`bôlt), town (1991 pop. 1,470), E Ont., Canada, NE of Sudbury, near Lake Timiskaming. Once a center for cobalt and silver mining, the area is now economically depressed. . In a recent Reuters Reuters British cooperative news agency. Founded in 1851 by Paul Julius Reuter, it was initially concerned with commercial news but began to serve a growing newspaper clientele after the London Morning Advertiser subscribed in 1858. dispatch A dispatch or dispatches can refer to:
1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , Mopani's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , forecasted, "copper production to rise to 200,000 tonnes in 2006." The increase in forecasted copper production can be attributed to capital upgrades at the mine including the construction of a new smelter at Mufulira, which will increase its handling capacity from 420,000 tonnes to 650,000 tonnes of copper concentrate per year. The smelter is expected to be completed and operating during the middle of 2006. As at December 31, 2005, Mopani had total assets over $700.0 million. As the majority owner of Mopani is a private company not registered in Zambia, only limited public information is available. Outlook For the full year of 2006, the Company expects to produce about 200,000 tonnes of copper (a 68% increase over 2005 copper production) which includes 140,000 to 145,000 tonnes from Kansanshi, 45,000 to 50,000 tonnes from Bwana/Lonshi and 15,000 tonnes from Guelb Moghrein. In addition, the Company expects to produce 75,000 ounces of gold which includes 40,000 ounces from Kansanshi and 35,000 ounces from Guelb Moghrein. Group cash costs are expected to be in the range of $0.72 to $0.77. During the period January to February 2006, Kansanshi produced 19,226 tonnes of copper which included 10,338 tonnes of copper cathode and 8,888 tonnes of copper in concentrate. During February 2006, the recently completed four million tonne sulphide sulphide: see sulfide. circuit expansion began commissioning. Name plate treatment capacity at Kansanshi now stands at eight million tonnes of sulphide ore per year, while oxide treatment capacity remains four million tonnes per year. Upon achieving design throughputs Kansanshi is expected to produce an average of 12,300 tonnes of copper per month which includes 6,000 tonnes of copper cathode and 6,300 tonnes of copper in concentrate. Cash costs for 2006 are forecast in the range of $0.71 to $0.77 per pound of copper. At Kansanshi, the Company is investing in a High Pressure Leach (HPL HPL - Language used in HP9825A/S/T "Desktop Calculators", 1978(?) and ported to the early Series 200 family (9826 and 9836, 68000). Fairly simple and standard, but with extensive I/O support for data acquisition and control (BCD, Serial, 16 bit custom and IEEE 488 interfaces), ) facility to treat a portion of the increased copper concentrate production. The main components of HPL project are two autoclaves, an oxygen plant and an additional 35,000 tonne per annum Per annum Yearly. solvent extraction Solvent extraction A technique, also called liquid extraction, for separating the components of a liquid solution. This technique depends upon the selective dissolving of one or more constituents of the solution into a suitable immiscible liquid solvent. and electrowinning Electrowinning, also called electroextraction, is the electrodeposition of metals from their ores that have been put in solution or liquefied. Electrorefining uses a similar process to remove impurities from a metal. (SX/EW) facility. The main equipment for the autoclave autoclave Vessel, usually of steel, able to withstand high temperatures and pressures. The chemical industry uses various types of autoclaves in manufacturing dyes and in other chemical reactions requiring high pressures. and oxygen plants has been successfully relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. from Turquoise turquoise, hydrous phosphate of aluminum and copper, Al2(OH)3PO4·H2O+Cu, used as a gem. It occurs rarely in crystal form, but is usually cryptocrystalline. Ridge in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , USA and all of the equipment is now either on site or undergoing refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Two autoclave vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. have been installed on their foundations at Kansanshi. Detailed design work for the HPL project has been completed, and construction is well underway. Site civil works for the project are essentially complete, with only a small amount of civil work outstanding for the oxygen plant. The majority of materials have been ordered and are currently arriving on site. The structural, plate work and mechanical installation associated with the new SX/EW plant are well progressed, and are also underway for the autoclave and oxygen plant areas. Piping and electrical installation for the project is expected to begin March 2006. Construction of the HPL project is expected to be completed such that pre-commissioning and commissioning will begin in the third quarter of 2006. One of the three high pressure autoclave vessels was damaged during transportation. An assessment of the damage is currently being undertaken but it will not slow the commissioning or hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. performance. The total capital cost is budgeted at $87 million including an upgrade to the Zesco power supply and increased working capital. The Bwana/Lonshi operation is forecast to produce in excess of 45,000 tonnes of copper cathode in 2006. During the very wet period January to February 2006, Bwana/Lonshi produced 7,311 tonnes of copper cathode. Cash costs for 2006 are forecast in the range of $0.76 to $0.83 per pound of copper. The Company is currently assessing the alternative and most beneficial uses for the Bwana processing plant after the Lonshi ore has been exhausted. In 2006, the Company also anticipates that it will process external ore purchased from third parties, to exploit the full production capacity at Bwana. This occurs for example during periods of heavy rain, and increases the ore costs. It should be noted that the forecast cash costs are provided under current accounting practice. With the implementation of the proposed accounting change to deferred stripping, actual results may differ from these forecasts. At Guelb, the detailed design was completed at the end of January. Logistical and supply difficulties in Mauritania have delayed the commissioning until the second quarter of 2006 and commercial production is expected to begin in the third quarter. The Company remains unable to release an engineering report as the Company is not treating the current resource statement as compliant
At Frontier, the scoping study is complete and will be published shortly. Subject to a positive production decision, and board of directors approval, pre-stripping and construction of civil works will begin after the rains end in April 2006. At the Kashime prospect diamond drilling continues with an initial resource estimate expected once the assay ASSAY. A chemical examination of metals, by which the quantity of valuable or precious metal contained in any mineral or metallic mixture is ascertained. 2. By the acts of Congress of March 3, 1823, 3 Story's L. U. S. 1924; of June 25, 1834, 4 Shars. cont. Story's L. U. S. results are available for the current program of drilling. On Behalf of the Board of Directors of First Quantum Minerals Ltd. G. Clive CLIVE Computer-aided Learning in Veterinary Education. A consortium of six veterinary schools in the United Kingdom providing computer based learning in veterinary undergraduates courses. Newall Newall is a surname, and may refer to: In the Peerage of the United Kingdom:
12g3-2b-82-4461 Listed in Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index Sedar Profile #00006237 Certain information contained in the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial constitutes "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of gold, copper, cobalt and sulphuric acid sulphuric acid: see sulfuric acid. , estimated future production, estimated costs of future production, the Company's hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements or information. Such factors include, among others, the actual prices of copper, gold, cobalt and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the Company's documents filed from time to time with the Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. , British Columbia, and Ontario Securities Commissions The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. , the Autorite des marches financiers in Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. , the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission and the Alternative Investment Market operated by the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . The preceding discussion and analysis and financial review should be read in conjunction with management's discussion of critical accounting policies, risk factors and comments regarding forward-looking statements contained in the audited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the period ended December 31, 2005. The following discussion and analysis of the Company's results of operations should also be read in conjunction with the audited consolidated financial statements and related notes.
--------------------------------------------------------------------
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Summary of Quarterly Results (unaudited)
--------------------------------------------------------------------
2004
Statement of Operations
and Deficit Q1 Q2 Q3 Q4
(millions, except where
indicated)
Total revenues $ 25.3 $ 26.3 $ 31.2 $ 30.7
Cost of sales 12.1 13.1 14.1 14.5
Depletion and amortization 2.3 3.0 2.6 3.0
Exploration 0.4 0.6 1.1 1.0
General and administrative 1.1 1.5 1.4 2.2
Interest 0.6 0.9 0.8 0.7
Other expenses (0.1) 0.6 (0.3) (0.9)
Income taxes 2.6 2.6 3.7 2.0
Minority interests - - - -
Equity earnings 0.4 0.2 0.1 1.0
Net earnings 6.7 4.1 7.9 9.3
Basic earnings per share $ 0.11 $ 0.07 $ 0.13 $ 0.16
Diluted earnings per share $ 0.11 $ 0.07 $ 0.13 $ 0.15
Realized copper price $ 1.03 $ 1.11 $ 1.16 $ 1.20
Total copper sold
(tonnes)(2) 9,700 19,299 1,674 10,872
Total copper produced
(tonnes)(4) 9,689 9,585 11,330 10,942
Total gold sold (ounces) - - - -
Cash Costs (C1) (per lb)(1) $ 0.39 $ 0.48 $ 0.45 $ 0.48
Total Costs (C3) (per lb)(1) $ 0.53 $ 0.67 $ 0.68 $ 0.59
--------------------------------------------------------------------
Financial Position (millions)
Working capital $ 40.2 $ 28.0 $ 51.8 $ 33.9
Total assets $ 241.8 $ 276.4 $ 385.0 $ 473.1
Weighted average # shares
(000's) 58,568 59,434 60,668 60,942
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Cash Flows from (millions)
Operating activities
Before working capital
movements $ 12.1 $ 11.5 $ 12.9 $ 9.8
After working capital
movements 6.6 10.8 10.4 2.9
Financing activities 57.4 16.5 76.6 49.0
Investing activities (36.2) (47.7) (69.7) (52.5)
Cash Flows from Operating
activities per share(3)
Before working capital
movements 0.21 0.19 0.21 0.16
After working capital
movements 0.11 0.18 0.17 0.05
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Kansanshi Production
Statistics
Mining:
Waste mined (000's tonnes) - - 1,175 2,857
Ore mined (000's tonnes) - - - 1,346
Ore grade % - - - 2.4
Processing:
Ore processed
(000's tonnes)(3) - - - -
Contained copper (tonnes)(3) - - - -
Recovery %(3) - - - -
Copper produced (tonnes)(3) - - - -
Combined Cash Costs:
Cash Costs (per lb)(1) - - - -
Total Costs (per lb)(1) - - - -
Cathode Cash Costs:
Cash Costs (per lb)(1) - - - -
Total Costs (per lb)(1) - - - -
Concentrate Cash Costs:
Cash Costs (per lb)(1) - - - -
Total Costs (per lb)(1) - - - -
Revenue (000's)
Copper cathodes - - - -
Copper concentrates - - - -
Total revenues - - - -
Copper cathode sold (tonnes) - - - -
Copper concentrate sold
(tonnes) - - - -
Bwana/Lonshi Production
Statistics
Mining:
Waste mined (000's tonnes) 1,036 2,854 4,213 2,926
Ore mined (000's tonnes) 66 85 257 261
Ore grade % 5.4 5.2 4.7 6.4
Processing:
Ore processed (000's tonnes) 209 237 278 256
Contained copper (tonnes) 10,904 10,813 12,908 12,824
Grade % 5.2 4.6 4.6 5.0
Recovery % 89 89 88 85
Copper produced (tonnes) 9,689 9,585 11,330 10,942
Acid produced (tonnes) 34,344 34,265 35,920 35,671
Surplus acid (tonnes) 20,763 19,149 16,884 9,664
Cash Costs (per lb)(1) $ 0.39 $ 0.48 $ 0.45 $ 0.48
Total Costs (per lb)(1) $ 0.53 $ 0.67 $ 0.68 $ 0.59
Revenues ($000's)
Copper cathodes 22,082 23,398 28,624 29,249
Copper cathodes
sold (tonnes) 9,693 9,553 11,233 11,060
--------------------------------------------------------------------
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2005
Statement of Operations
and Deficit Q1 Q2 Q3 Q4
(millions, except where
indicated)
Total revenues $ 38.2 $ 86.5 $ 143.0 $ 176.9
Cost of sales 16.2 35.0 53.8 46.9
Depletion and amortization 3.9 6.9 12.5 13.2
Exploration 1.0 1.1 1.5 3.8
General and administrative 2.1 2.2 2.5 2.9
Interest 0.8 3.4 5.8 9.3
Other expenses (0.6) (1.7) 5.9 13.5
Income taxes 3.7 7.2 14.8 19.9
Minority interests - 3.3 6.8 10.2
Equity earnings - - - -
Net earnings 27.2 29.0 39.5 57.1
Basic earnings per share $ 0.44 $ 0.47 $ 0.64 $ 0.93
Diluted earnings per share $ 0.43 $ 0.46 $ 0.63 $ 0.90
Realized copper price $ 1.44 $ 1.42 $ 1.58 $ 1.97
Total copper sold
(tonnes)(2) 12,000 26,535 39,864 40,203
Total copper produced
(tonnes)(4) 12,028 28,673 36,196 42,220
Total gold sold (ounces) - 1,370 7,130 5,766
Cash Costs (C1) (per lb)(1) $ 0.58 $ 0.60 $ 0.64 $ 0.71
Total Costs (C3) (per lb)(1) $ 0.75 $ 0.80 $ 0.87 $ 0.89
--------------------------------------------------------------------
Financial Position (millions)
Working capital $ 61.4 $ 47.1 $ 32.2 $ 76.2
Total assets $ 523.1 $ 561.9 $ 641.5 $ 746.5
Weighted average # shares
(000's) 61,267 61,499 61,583 61,639
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Cash Flows from (millions)
Operating activities
Before working capital
movements $ 19.7 $ 43.0 $ 81.1 $ 101.0
After working capital
movements 22.9 2.3 69.8 115.5
Financing activities 24.8 (22.8) (5.1) (1.6)
Investing activities (19.0) (2.3) (57.8) (94.4)
Cash Flows from Operating
activities per share(3)
Before working capital
movements 0.32 0.70 1.32 1.64
After working capital
movements 0.37 0.04 1.13 1.87
--------------------------------------------------------------------
Kansanshi Production
Statistics
Mining:
Waste mined (000's tonnes) 1,651 3,185 6,064 5,240
Ore mined (000's tonnes) 2,119 2,050 1,621 1,499
Ore grade % 1.7 2.0 2.0 1.9
Processing:
Ore processed (000's
tonnes)(3) - 1,129 1,461 1,619
Contained copper (tonnes)(3) - 19,917 27,510 30,934
Recovery %(3) - 86 84 96
Copper produced (tonnes)(3) - 16,956 23,065 29,558
Combined Cash Costs:
Cash Costs (per lb)(1) - $ 0.63 $ 0.59 $ 0.65
Total Costs (per lb)(1) - $ 0.80 $ 0.80 $ 0.76
Cathode Cash Costs:
Cash Costs (per lb)(1) - $ 0.61 $ 0.52 $ 0.52
Total Costs (per lb)(1) - $ 0.80 $ 0.73 $ 0.63
Concentrate Cash Costs:
Cash Costs (per lb)(1) - $ 0.65 $ 0.71 $ 0.87
Total Costs (per lb)(1) - $ 0.81 $ 0.90 $ 0.98
Revenue (000's)
Copper cathodes - 29,165 54,116 87,624
Copper concentrates - 15,309 34,668 31,850
Total revenues - 44,474 88,784 119,474
Copper cathode sold (tonnes) - 8,919 14,227 18,505
Copper concentrate sold
(tonnes) - 6,024 12,243 9,260
Bwana/Lonshi Production
Statistics
Mining:
Waste mined (000's tonnes) 2,596 4,025 4,707 5,918
Ore mined (000's tonnes) 152 319 300 209
Ore grade % 5.3 5.5 3.9 6.1
Processing:
Ore processed (000's tonnes) 264 328 363 397
Contained copper (tonnes) 13,804 13,354 15,003 14,262
Grade % 5.2 4.1 4.1 3.6
Recovery % 87 88 88 89
Copper produced (tonnes) 12,028 11,717 13,131 12,662
Acid produced (tonnes) 55,275 69,218 64,263 72,040
Surplus acid (tonnes) 49 14,939 7,120 219
Cash Costs (per lb)(1) $ 0.58 $ 0.57 $ 0.74 $ 0.84
Total Costs (per lb)(1) $ 0.75 $ 0.79 $ 1.01 $ 1.16
Revenues ($000's)
Copper cathodes 38,172 38,899 49,602 54,694
Copper cathodes
sold (tonnes) 12,000 11,592 13,394 12,438
(1) For the definition of cash and total costs, reference should be
made to section 7.
(2) Copper sold does not include tonnes sold prior to pre-commercial
production.
(3) Copper produced does not include tonnes produced prior to
pre-commercial production.
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Consolidated Balance Sheets
As at December 31, 2005 and 2004
(expressed in thousands of US dollars)
2005 2004
$ $
Assets
Current assets
Cash and cash equivalents (note 19) 82,910 50,356
Restricted cash (note 10) 20,162 1,931
Accounts receivable and prepaid expenses 70,444 21,927
Inventory (note 5) 60,854 31,674
----------- -----------
234,370 105,888
Investments (note 6) 9,522 15,340
Property, plant and equipment (note 7) 471,294 319,222
Other assets (note 8) 31,325 32,611
----------- -----------
746,511 473,061
----------- -----------
----------- -----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 63,492 33,474
Current taxes payable 16,055 3,248
Other current liabilities (note 9) 78,632 35,287
----------- -----------
158,179 72,009
Long-term debt (note 10) 176,767 191,661
Other liabilities (note 11) 34,340 37,048
Future income tax liability (note 13) 43,330 12,313
----------- -----------
412,616 313,031
Minority interest 22,454 2,190
----------- -----------
435,070 315,221
----------- -----------
Shareholders' Equity
Equity accounts (note 14) 166,592 161,776
Retained earnings (deficit) 144,849 (3,936)
----------- -----------
311,441 157,840
----------- -----------
746,511 473,061
----------- -----------
----------- -----------
Commitments and contingencies (note 21)
The accompanying notes are an integral part of these consolidated
financial statements.
For a copy of the notes visit the Company's website at
www.first-quantum.com.
Consolidated Statements of Earnings and Deficit
For the years ended December 31, 2005 and 2004
(expressed in thousands of US dollars)
2005 2004
$ $
Revenues
Copper 434,100 103,352
Gold 6,715 -
Acid 3,799 10,171
----------- -----------
444,614 113,523
Cost of sales 151,904 53,770
Depletion and amortization 36,545 10,873
----------- -----------
Operating profit 256,165 48,880
Other expenses
Exploration 7,493 3,063
General and administrative 9,724 6,171
Interest on long-term debt 19,385 3,040
Other expenses (income) (note 16) 16,996 (725)
Gain on disposal of investment (16,127) -
----------- -----------
37,471 11,549
----------- -----------
Earnings before income taxes, minority
interests and equity earnings 218,694 37,331
Income taxes (note 13) 45,612 11,006
Minority interest 20,264 -
Equity earnings - 1,685
----------- -----------
Net earnings for the year 152,818 28,010
Deficit - beginning of year (3,936) (31,946)
Dividends (4,033) -
----------- -----------
Retained earnings (deficit) - End
of year 144,849 (3,936)
----------- -----------
----------- -----------
Earnings per common share
Basic $ 2.48 $ 0.47
Diluted $ 2.43 $ 0.46
Weighted average shares
outstanding (000's) 61,498 60,123
The accompanying notes are an integral part of these consolidated
financial statements.
For a copy of the notes visit the Company's website at
www.first-quantum.com.
Consolidated Statements of Cash Flows
For years ended December 31, 2005 and 2004
(expressed in thousands of US dollars)
2005 2004
$ $
Cash flows from operating activities
Net earnings for the year 152,818 28,010
Items not affecting cash
Depletion and amortization 36,545 10,873
Minority interest 20,264 -
Provision for deferred stripping 1,690 -
Unrealized foreign exchange gain (7,744) (1,180)
Future income tax expense 26,632 7,724
Stock-based compensation expense 2,656 1,227
Unrealized derivative
instruments loss 14,890 -
Other 4,503 (391)
Gain on disposal of investment (16,127) -
----------- -----------
236,127 46,263
Change in non-cash operating
working capital
Increase in accounts receivable
and prepaid expenses (44,518) (9,455)
Increase in inventory (25,218) (14,514)
Increase in accounts payable and
accrued liabilities 35,451 8,397
----------- -----------
201,842 30,691
----------- -----------
Cash flows from financing activities
Restricted cash (18,231) (1,931)
Proceeds from long-term debt 68,023 179,455
Repayments of long-term debt (39,819) (17,401)
Issuance of common shares and warrants 2,159 46,983
Dividends paid (4,033) -
Deferred premium obligation and
finance fees (12,763) (7,635)
----------- -----------
(4,664) 199,471
----------- -----------
Cash flows from investing activities
Property, plant and equipment (180,195) (193,245)
Investments - (1,023)
Prepaid power payments - (6,988)
Deferred exploration and stripping
costs (6,545) (4,849)
Proceeds from sale of investments 21,944 -
----------- -----------
(164,796) (206,105)
----------- -----------
Effect of exchange rate changes on
cash 172 707
Increase in cash and cash
equivalents 32,554 24,764
Cash and cash equivalents -
Beginning of year 50,356 25,592
----------- -----------
Cash and cash equivalents - End of
year 82,910 50,356
----------- -----------
----------- -----------
The accompanying notes are an integral part of these consolidated
financial statements.
For a copy of the notes visit the Company's website at
www.first-quantum.com.
Segmented Information
For years ended December 31, 2005 and 2004
(expressed in thousands of US dollars)
For the year ended December 31, 2005, segmented information is
presented as follows:
--------------------------------------------------------------------
--------------------------------------------------------------------
2005
--------------------------------------------------------------------
Inter-
KCO BLO GMP CDA segment Total
$ $ $ $ $ $
--------------------------------------------------------------------
Revenues 259,448 198,777 - 11,986 (25,597) 444,614
Cost of sales 67,467 84,437 - - - 151,904
Depletion and
amortization 14,987 21,443 - 115 - 36,545
--------------------------------------------------------------------
Operating
profit (loss) 176,994 92,897 - 11,871 (25,597) 256,165
Interest on
long-term
debt 16,140 2,865 - 380 - 19,385
Gain on
disposal of
investment - - - (16,127) - (16,127)
Other 19,159 6,468 - 8,586 - 34,213
--------------------------------------------------------------------
Segmented
profit before
undernoted
items 141,695 83,564 - 19,032 (25,597) 218,694
Income taxes 31,497 18,842 - (4,727) - 45,612
Minority
interest 20,264 - - - - 20,264
--------------------------------------------------------------------
Segmented
profit 89,934 64,722 - 23,759 (25,597) 152,818
--------------------------------------------------------------------
Property,
plant and
equipment 323,194 71,488 65,991 10,621 471,294
Total assets 488,342 117,064 66,600 74,505 746,511
Capital
expenditures 93,099 35,073 55,719 6,165 190,056
--------------------------------------------------------------------
--------------------------------------------------------------------
For the year ended December 31, 2004, segmented information is
presented as follows:
--------------------------------------------------------------------
--------------------------------------------------------------------
2004
--------------------------------------------------------------------
Inter-
KCO BLO GMP CDA segment Total
$ $ $ $ $ $
--------------------------------------------------------------------
Revenues - 113,523 - 5,806 (5,806) 113,523
Cost of sales - 53,770 - - - 53,770
Depletion and
amortization - 9,552 - 1,321 - 10,873
--------------------------------------------------------------------
Segmented
operating
profit - 50,201 - 4,485 (5,806) 48,880
Interest on
long-term debt - 2,803 - 237 - 3,040
Other - 1,745 - 6,764 - 8,509
--------------------------------------------------------------------
Segmented
profit before
undernoted
items - 45,653 - (2,516) (5,806) 37,331
Income taxes - 11,006 - - - 11,006
Equity
earnings - - - 1,685 - 1,685
--------------------------------------------------------------------
Segment profit - 34,647 - (831) (5,806) 28,010
--------------------------------------------------------------------
Property,
plant and
equipment 245,937 58,284 10,275 4,726 319,222
Total assets 304,284 107,739 10,475 50,563 473,061
Capital
expenditures 204,923 19,038 10,275 3,689 237,925
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Bwana/Lonshi Operation ("BLO"), Kansanshi Copper/Gold Operation
("KCO"), Guelb Moghrein Project ("GMP"), Corporate Development and
Administration and Other ("CDA")
The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has not reviewed and does not accept re sponsibility for the adequacy or accuracy of this release. First Quantum Minerals Ltd. (TSX:FM) (LSE:FQM) |
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